The Ultimate Zombie Debt Quiz

If you've ever had a company try to collect on a loan you don't actually owe, you've dealt with zombie debt. Zombie debt can be difficult to deal with, as can the companies that collect this debt. Do you know what to do when these harassing calls start to come in? Take our quiz to learn more about zombie debt.

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Question 1 of 20

To avoid future credit problems, what should you do if your credit card is stolen?

Immediately report the theft to the credit card company.

The first thing you should do if your credit card is stolen is contact the credit card company. This will help avoid serious credit problems later on.

Call 911.

Retrace your steps, and try to figure out the identity of the thief.

Question 2 of 20

What will most credit card companies do if you report that your card has been stolen.

They will cancel your account, and ask you to pay off the balance on the account.

They will cancel the card and the ignore the illegal purchases.

Credit card companies usually handle the theft of a card by cancelling the card, ignoring the purchases, and contacting the authorities. You won't be charged for those purchases.

They will give you 48 hours to find your card before fining you for the loss of the card.

Question 3 of 20

How does an agency you've never heard of get your debt information?

They hire private investigators.

They steal your credit information.

They purchase your debts.

Debts are constantly being sold and resold. Sometimes you will end up owing money to an agency with which you've never interacted.

Question 4 of 20

Which of these statements best describes zombie debt?

Zombie debt is a debt owed to you by an individual who has since changed his or her name, and cannot be found.

Zombie debt is a debt that is not your responsibility, but which someone is trying to collect from you.

Zombie debt refers to debt for which you should not be held responsible, but which you can not seem to get erased from your record. Like a zombie, these debts seem difficult to kill.

Zombie debt is a debt owed by an individual who has passed away.

Question 5 of 20

How might zombie debt hurt your credit?

There is a special section on your credit report for zombie debts.

The charge might appear on your credit report as unpaid, which will lower your credit score.

Just because a credit company's claim is false doesn't mean it won't appear on your credit record. Always keep an eye on your credit report, to avoid false charges and damaging reports.

The IRS requires all zombie debt to be taxed at 5.8 percent, and failing to pay these taxes can lower your credit score.

Question 6 of 20

Which of these has contributed to the profitability of zombie debt collection?

Y2K

tax cuts

identity theft

Identity theft can cause many problems with your credit, including debts that are not your responsibility suddenly haunting you.

Question 7 of 20

To avoid zombie debt you should check your credit report at least how often?

once a year

You have a legal right to an annual free copy of your credit report, so take advantage of that opportunity to keep tabs on your credit.

once every three years

twice every seven years

Question 8 of 20

What do credit card companies do when their efforts to collect on a debt fail.

They report the case to the Attorney General's office.

They contact the IRS.

They write the debt off as a loss.

Once a credit card company sees it is not making progress collecting on a debt, they write off the debt.

Question 9 of 20

After a credit card company writes off a debt it will often do which of the following?

They sell the debt to a collection agency.

Credit companies are not in the debt collection business. They simply sell the debt to a collection agency, and the agency does the rest.

They sue you for breach of contract.

They offer you a settlement option.

Question 10 of 20

What is the price range that collectors will pay to purchase a debt?

between a fraction of a penny and $0.12 on the dollar

A collection agency will buy a debt for as much as twelve cents on the dollar, or for as little as a portion of a penny.

In 2006, the federal government took actions against which of these companies for improper debt collection?

Halliburton

Enron

NCO Financial Systems

While the actions of Enron and Halliburton are infamous, some of the action of NCO Financial Systems may be even worse. They have even been accused of trying to collect on the debts of the deceased from their loved ones.

Question 13 of 20

Asset Acceptance Capita's revenues increased by how much between 2001 and 2005?

200 percent

300 percent

400 percent

In the four years between 2001 and 2005, Asset Acceptance Capita quadrupled its annual revenues.

Question 14 of 20

Which of these was written to protect consumers from improper debt collect?

Which of these government organizations deals with complaints against collection agencies?

the Federal Bureau of Investigation

the Internal Revenue Service

the Federal Trade Commission

The Federal Trade Commission fields more complaints against collection agencies than against any other type of financial group.

Question 16 of 20

A debt collector is legally obligated to do which of the following?

They must identify themselves.

The Fair Debt Collection Practices Act requires debt collectors to identify themselves. Get the collectors identity, and keep it in your records for later use.

They must give you one year to pay off your debt.

They must send you a letter in writing.

Question 17 of 20

When contacted by a collection agency regarding a debt you know is not yours, you should do which of these?

Call a tax attorney.

Send a certified letter requesting that the company stop contacting you.

Documentation is a powerful legal tool. The moment you get a call regarding zombie debt, you should respond with a certified letter that demands the collection agency cease all contact. Keep a copy of both the letter and the mailing receipt.

Contact your state representative about the matter.

Question 18 of 20

If you've filed for bankruptcy, the debt being collected can be fought using which of these?

a bankruptcy discharge order

When someone files for bankruptcy, they receive a discharge letter from a court. This letter is legally binding, and can be used to block most collection attempts.

an IRS CH-13 form

an FTC form 42-a

Question 19 of 20

Which of these actions are debt collectors not allowed to engage in?

They may not charge interest and fees.

The may not harass you.

While collections agencies have the right to try and collect on a debt, federal law bars them from harassing you.

They may not contact you after 8p.m.

Question 20 of 20

Which of these advocacy groups can provide helpful information about handling zombie debt?

the National Association of Consumer Advocates

The National Association of Consumer Advocates has specialists who advise people on what to do when faced with zombie debt.